Shares of JM Smucker surged 3.6% in pre-market trading on Wednesday, lifting the stock to $130—above its prior 52-week high of $127.64—after the food and beverage company reported stronger-than-expected quarterly results and raised its full-year guidance.
The company posted adjusted earnings per share of $3.24 for the first fiscal quarter of 2027, a 71% increase from the same period a year earlier and well above the Wall Street consensus of approximately $2.21. A key driver was a $115 million refund of tariffs received during the quarter, which contributed $0.84 per share to adjusted EPS. Net revenue rose 5% to $2.22 billion, topping forecasts of about $2.12 billion, while free cash flow swung to a positive $337.3 million from a negative $94.9 million a year prior.
U.S. retail coffee sales advanced 13% year-over-year, and the company’s Uncrustables line maintained positive momentum. For the full fiscal year 2027, JM Smucker raised its adjusted EPS guidance to a range of $10.50 to $11.00, up from the prior range of $9.75 to $10.25 and comfortably above the analyst consensus of about $10.05. The company also reduced its projected net revenue decline to between 1% and 2%, compared with the previous estimate of a 3% to 4% drop.
Analysts have taken note of the improved outlook. UBS’s Peter Grom raised his price target to $142 from $130 on August 20, maintaining a buy/outperform rating. JPMorgan’s Thomas Palmer similarly lifted his target to $139 from $125 on August 14, while keeping a buy/outperform rating.
The broader market showed little support during the session, with the S&P 500 down 0.1%, the Nasdaq falling 0.4%, and the Dow Jones up just 0.1%. The consumer staples sector, to which JM Smucker belongs, benefited from defensive characteristics amid persistent uncertainty over U.S. Treasury yields and mixed economic signals.
